I am new here, Just did my first project here. I was thinking to open a post about Local Funds Transfer (LFT). But find it.
Anyway, what is the minimum account can I withdraw from my account?
Let's consider GST implication on LFT if anyone is confused --
As per law under erstwhile Service Tax and now under Goods & Service Tax (GST) export of services was exempt and now Zero Rated Sales.
All contracts via UpWork to any contractor outside India will be eligible for the Exemption and Now Zero rated sale, since the -
1. Service Provider is from Taxable Territory (India)
2. Service Recipient is from Non-Taxable Territory (Outside India)
3. There isn't any relationship between 1 & 2. or not been controlled by 'Distinct Person'
4. Consideration received is in Convertible Foreign Exchange.
To clarify - All LBT (local bank transfers directly in INR) is as well considered as Convertible Foreign Currency, even though it's not spefically mentioned under the law, but as per earlier Tribunal, CESTAT and Court Decrees/Orders, if the first three conditions of the export of services is sufficed, and the consideration is paid in Local Currency or INR to the service provider by the third party dealer of the Service Recepient, it will be deemed to be Convertible Foreign Currency.
The defination of Convertible Foreign Currency is laid out under the Notification No. FEMA 9/2000-RB and FEMA 14/2000-RB dated May 3, 2000 issued by RBI under Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2000 (“FEMA Notifications”)
A decided case law - Sun-Area Real Estate Pvt. Ltd. Vs. Commissioner of Service Tax, Mumbai-I [2015-TIOL-956-CESTAT-MUM]
So, under the GST law, the FEMA defination continues, and LBT remains the cheapest way to transfer funds.